Is the CME Group Front-Running the RMG Cryptocurrency?
Is the CME Group Front-Running the RMG Cryptocurrency? by Rory, The Daily Coin
What kind of world will be living in with gold $5-$6,000 per ounce?
As we reported in April 2017 the CME Group has developed, and is currently testing with “major finanicial institutions”, a new gold backed cryptocurrency called Royal Mint Gold (RMG). Then, just a few days ago, as Craig Hemke, who broke the story on July 12, when Terry Duffy, President of the CME Group, stated gold should be $5,000 to $6,000 per ounce. Isn’t that interesting?
WHY would the CEO of the CME state this on live TV?? Is it because he now expects much higher metals prices in the months ahead and he wants to front-run them with his “analysis”? Is he tipping off The Banks that their games are almost over? Does he know about the “reset” that Andrew Maguire has been referencing? Is he just simply clueless as to WHY price is only $1220? (This I highly doubt.)
The Economic Times of India recently painted a picture portraying gold moving up $1,250 per ounce. Well, why not a lot higher? The CME Group owns the COMEX which sets the global price of gold. If the President of the company that owns the exchange that sets the global price of gold can make this type of statement, then gold moving up to $1,250 should be a no brainer. As most in the gold space know India is very a important market for physical gold and must be taken into account when discussing physical gold. Their annual imports are second only to China with China moving into first position within the last several years.
So, what role does the CME Group releasing a gold backed cryptocurrency later in 2017 have to do with the President of the CME Group making this statement about gold being 4-5 times higher than it is today? I would say a lot.
With the launch of ZenGold on May 26, 2017, the second gold backed cryptocurrency, all “tokens” were sold out in a matter of hours. OneGram, was the first gold backed gold backed cryptocurrency and, to my knowledge, is the first sharia law compliant cryptocurrency. Is it possible the President of the CME Group, who is currently developing/testing a gold backed cryptocurrency, had a very keen eye on these two market offerings? Is it possible, Terry Duffy made this statement, just a few weeks prior to the launch of RMG, wanted to bring the necessary attention to gold that would ensure gold buyers would move into this new gold product?
While the Rigged Paper Gold Market Drives Pricing – The Physical Gold Market Still Matters
With India importing approximately 124 tons of gold in May alone it seems gold should be moving much higher. 124 tons represents approximately 2.5% of global gold production. No, that’s not much until you take into account this is one month and one nations gold acquisitions. The amount of official gold imported into India does not account for any of the smuggled gold. India has a centuries old reputation of gold smuggling and it is impossible to know the impact this has on the physical gold market. Estimates from knowledgable sources place smuggled gold into India somewhere around 150-300 tons annually.
If official India gold imports continue at the pace set in May, this should keep gold in check on the paper market in June and July. The market riggers will be unable to push gold down very far or for more than a few days or a few hours, which is what we see more and more. The past several years it has taken the market riggers more paper contracts to achieve a smaller impact on the gold market for shorter periods of time. This is cutting into the profits of the bullion banksters.
This is to say nothing of the volume of physical gold moving through the Shanghai Gold Exchange (SGE), the physical gold being acquired to back, at least, three new cryptocurrencies or the gold Russia’s Central Bank is acquiring.
In May 2017 Russia’s Central Bank added another 21.8 tons to their official gold holdings and in June we should see between 15 and 22 tons added to the official gold stack of Russia. The SGE, through May 2017, has moved approximately 829 tons of gold, which is a little shy of a record setting pace.
Two of the three gold backed cryptocurrencies, ZenGold and One Gram have launched and began acquiring physical gold for their cryptocurrencies – ZenGold issued a total of 100Milion tokens at one gram of physical gold for each token and OneGram issued 12.4 million tokens at one gram each of physical gold. These are significant amounts of physical gold that were not part of the physical gold market in 2016. This has to move the market as where is all this new physical gold coming from? Someone is not getting the volume of gold in 2017 as they did in 2016. There is only so much gold, each year, to go around. And at the current pricing of gold there is little coming out of private vaults.
Will gold reach such lofty heights as $5-$6,000 per ounce? It should, but the real question is, will the money-changers allow it to reach it’s full potential or were the statements from Terry Duffy a dog-and-pony show for his company’s new digital gold product?
Since the money-changers derive all their power and privilege from the fiat currency system it seems that only a major change in our current system will allow gold to break free and begin moving higher in earnest. In the meantime, we will simply keep taking advantage of these suppressed levels for both gold and silver and keep stacking physical until such time as the money-changers have no choice in what happens with the physical market.